Configuration Guide for: CRR Balancing Account / Date: 064/0922/20173
Settlements & Billing
Configuration Guide: CRR Balancing Account
CC 6790
Version 5.3a
CAISO, 2018 / Page 1 of 11Settlements & Billing / Version: 5.3a
Configuration Guide for: CRR Balancing Account / Date: 064/0922/20173
Table of Contents
1.Purpose of Document
2.Introduction
2.1Background
2.2Description
3.Charge Code Requirements
3.1Business Rules
3.2Predecessor Charge Codes
3.3Successor Charge Codes
3.4Inputs – External Systems
3.5Inputs - Predecessor Charge Codes or Pre-calculations
3.6CAISO Formula
3.7Outputs
4.Charge Code Effective Date
1.Purpose of Document
The purpose of this document is to capture the requirements and design specification for a SaMC Charge Code in one document.
2.Introduction
2.1Background
Consistent with the adoption of Locational Marginal Pricing (LMP) under the new market design in place of zonal pricing under the current zonal market design, the current congestion hedging instrument, Firm Transmission Rights (FTR), will be replaced with a new instrument called Congestion Revenue Rights (CRRs). In effect, zones will be eliminated and the new instrument will make use of CRR Source(s) and CRR Sink(s) that are based on Nodes or group of Nodes.
FERC orders have approved the ISO’s proposal to allocate CRRs to Load-Serving entities (LSEs) that serve customers located within the ISO Control Area, and to certain other partiesdescribed in the CAISO white paper on CRR Allocation Rules. “The central principle behind allocation of CRRs to LSEs serving internal customers is that these customers have supported and continue to support the embedded costs of the transmission system through their payment of access charges, which entitles them to utilize the grid to bring power from their power sources to the points where they take power off the grid without being exposed to additional charges for such use of the grid. This principle is made operational by allocating financial hedging instruments – CRRs – that enable the LSE to hedge the charges for grid Congestion that will be assessed in their regular Settlements with the ISO.” [CAISO White Paper: CRR Allocation Rules, 06/14/05]
CRRs may come from allocations by CAISO, given free of charge to select market participants. CRRs may also come from auctions by CAISO for any remaining available CRR capacities after the allocations. CRRs from auctions are bought at a Market Clearing Price. Furthermore, the CRRs can be subdivided and can be traded in the secondary market but no new CRRs will be released by CAISO in the secondary market.
CAISO conducts an annual CRR Allocation once a year for the entire year. The annual CRR Allocation releases Seasonal CRRs for four seasonal periods. The CAISO also conducts monthly CRR Allocation twelve times a year in advance of each month. In addition, CAISO also conducts yearly and monthly CRR Auctions which can release monthly as well as seasonal CRRs. There is also a special type of CRRs - the Long-Term CRRs (LT-CRR) – which have a validity of ten years as opposed to the short–term ones. These LT-CRRs are seasonal in nature and are released via the annual CRR allocation process but not through CRR Auction.
Ownership of a CRR may change hands. However, only one entity can own the CRR in any Trading Hour and CAISO will settle with that owner.
The CRR charge codes, consisting of CC 6798 (CRR Auction Transaction Settlement), CC 6700 (CRR Hourly Settlement), CC 6790 (CRR Balancing Account), and CC 6791 (CRRBA Accrued Interest Allocation) shall conform to the Tariff language on CRR Settlements (Section 11.2.4) and Full Funding of CRRs (Section 36.2.8).
CC 6700 settles the entitlement amounts (payments and charges) of all valid CRR holdings for each Trading Hour. This is funded by the CRR Balancing Account (CC 6790). The CRRBA is a daily account consisting of the IFM Congestion Fund, which is composed of hourly congestion revenues from Day-Ahead AS imports and Energy schedules and of CRR Charges. In addition, the CRRBA contains the net revenues from CRR Auctions applicable to each day. At the end of each day, the CRRBA is cleared through distribution of surplus or allocation of shortfall to Measured Demand excluding Measured Demand associated with valid ETC, TOR, and CVR Self-Schedules. Furthermore, at each month-end, accrued interest from investment of auction revenues shall be allocated to monthly Measured Demand excluding Measured Demand associated with valid ETC, TOR, and CVR Self-Schedules.
2.2Description
The CRR Balancing Account (CRRBA) is an internal tracking account that offsets the CRR Payments and CRR Charges to achieve neutrality at the end of each day. The CRRBA represents the daily account that is used for the CRR dailyclearing process. At the end of each day, any surplus or deficit in the CRRBA, particularly the daily CRRBA account, is allocated to daily Measured Demand excluding the valid and balanced portion of TOR/ETC/CVR Self-Schedules for which IFM and RTM Congestion credits were provided. Each CRRBA daily account is completely used up or cleared at the end of each relevant day.
Hourly excess Congestion revenues or shortfall from settling IFM Congestion revenues less the net CRR entitlements in theCRR Hourly Settlement are forwarded to the relevant CRRBA daily account. CRR Auction revenues for the specific Trading Day are also forwarded to the relevant CRRBA daily account.Increased CRR revenues attributable to Convergence Bidding will be taken back in CC 6703and forwarded to the relevant CRRBA daily account.At Trading Day end, a clearing adjustment is made to the CRRBA daily account.
For cash management purpose, the Finance Department maintains an interest-bearing bank account to track CRRBA funds. Monthly interest accrues from net proceeds of CRR Auction revenues that are held for more than a month.These accrued interests are forwarded to the relevant monthly CRRBA accrued interest fund to be allocated in CC 6791.
3.Charge Code Requirements
3.1Business Rules
.
Bus Req ID / Business Rule1.0 / The charge code tracks the activity in the CRR Balancing Account (CRRBA) for the dailyclearing process for CRR Holders which are fully funded their entitlements, and then allocates any surplus or deficit, at the end of each day to Measured Demand excluding the valid and balanced portion of TOR/ETC/CVR Self-Schedules for which IFM and RTM Congestion credits were provided.
2.0 / Each CRRBA daily account is separate from each other and each is completely cleared at the end of the relevant day.
3.0 / Each CRRBA daily account, (corresponding to CAISODailyCRRBAAmount m) shall include the following:
(a)the CAISO IFM congestion balance from all hours of the TradingDay; and
(b)the addition of net proceeds from CRR monthly and yearly auction specific for the TradingDay.
(c)Increased CRR Revenues attributable to Convergence Bidding
3.1 / Each hourly CAISO IFM congestion balance is the sum of IFM Congestion Charge and the CAISO total full net CRR entitlement amount. This amount is computed in the CRR Hourly Settlement (CC 6700). (Fact)
3.3 / CRR Auction revenues for each specific Trading Month, calculated in CC 6798 particularly coming from CRRs auctioned monthly and yearly, are to be distributed to the relevant CRRBA daily accounts of the same Trading Month.
3.4 / The conversion of the net monthly auction revenues to daily values shall be made based on time of use. In particular, the daily CRRBA contribution is the sum of (1) the monthly on-peak amounts from CRR auction revenues multiplied by the ratio of daily on-peak hours to monthly on-peak hours, and (2) the monthly off-peak amounts from CRR auction revenues multiplied by the ratio of daily off-peak hours to monthly off-peak hours.
3.5 / Net proceeds from the yearly CRR Auction are invested by the CAISO and accrue monthly interest when held by CAISO for more than a month. The accrued interest isaccounted for and cleared in the CRRBA accrued interest allocation Charge Code CC 6791 on a monthly basis.
4.0 / Clearing of CRRBA daily account:
At the end of the day, any surplus or deficit in the CRRBA daily account shall be allocated to Measured Demand excluding the valid and balanced portion of TOR/ETC/CVR Self-Schedules for which IFM and RTM Congestion credits were provided.
3.2Predecessor Charge Codes
Charge Code/ Pre-calc NameCC 6700 - CRR Hourly Settlement
CC 6798 - CRR Auction Transaction Settlement
Measured Demand over Control Area Precalculation
CC 6703 - Convergence Bidding CRR Revenue Adjustment Settlement
3.3Successor Charge Codes
Charge Code/ Pre-calc NameNone
3.4Inputs – External Systems
Row # / Variable Name / Description1 / CRRBAAllocationExceptionFlag / Indicator of whether or not Exception Set #1 from the pre-calculation “Measured Demand Over Control Area” applies to the CRR Balancing Account (CC 6970) configuration. 1 => Exception Set #1 applies; 0 => Exception Set #1 does not apply
2 / CAISOMonthlyCRRAuctionMarketTOUTotalRevenueAmt t’md / This monthly value comes from CC 6798 as a translation of attributes U’ and U into Trade Month m in the charge type CAISOMonthlyCRRAuctionMarketTotalRevenueforMonthAmount UU’ t’ . The month period bounded by U’ and U attributes month is the same Trading Month m in which the Trading Day d belongs.
Note: This raw input will not be reportable. However, an output variable, CAISOMonthlyCRRAuctionMarketTOUTotalRevenueAmount t’md, with the same value and attributes will be reportable.
3 / CAISODailyTOUMonthToDayConversionFactort’md / The rate used to convert total monthly auction revenues to daily values for distribution into the CRRBA daily accounts.
The daily on-peak TOU rate is the ratio of on-peak hours for the day to the on-peak hours for the month; while the daily off-peak TOU rate is the ratio of off-peak hours for the day to the off-peak hours for the month.
For this input, the time of use (t’) attribute value is provided as ‘ON’ if on-peak, or ‘OFF’ for off-peak.
The on-peak and off-peak hours definition is available through the bill determinant CRRHourlyTOU with a value 1 for on-peak and 0 for off-peak. CRRHourlyTOU definition is provided for all hours of the Trading Day on a daily basis.The TOU definition for all hours of the year is also provided by the CAISO CRR Team via the CRR website portal.
3.5Inputs - Predecessor Charge Codes or Pre-calculations
Row # / Variable Name / Predecessor Charge Code/Pre-calc Configuration
1 / CAISOHourlyIFMCongestionBalanceAmounth / CC 6700 - CRR Hourly Settlement
This variable will be shown as
CAISOHourlyIFMCongestionBalance mdh, showing the additional attributes m and d for Trading Month and Trading Day, as required in the formulas.
2 / CAISOTotalHourlyMeasuredDemandMinusRightsControlAreaQty_Ex1 mdh / PC Measured Demand Over Control Area
3 / BAHourlyMeasuredDemandMinusRightsControlAreaQty_Ex1 Bmdh / PC Measured Demand Over Control Area
4 / CAISOTotalHourlyMeasuredDemandMinusRightsControlAreaQty mdh / PC Measured Demand Over Control Area
5 / BAHourlyMeasuredDemandMinusRightsControlAreaQtyBmdh / PC Measured Demand Over Control Area
6 / CAISOTotalDailyCRRSettlementAdjustmentDueToCB md / CC 6703 - Convergence Bidding CRR Revenue Adjustment Settlement
3.6CAISO Formula
3.6.1BADailyCRRBAAllocationAmount Bmd =
(-1)* BADailyMeasuredDemandControlArea_CRRBA_BQBmd * CAISODailyCRRBAAllocationPriceBmd
3.6.1.1BADailyMeasuredDemandControlAreaQty_CRRBA_BQBmd =
BAHourlyMeasuredDemandMinusRightsControlAreaQty_CRRBA_BQBmdh
3.6.1.2Where IF CRRBAAllocationExceptionFlag = 1 THEN
BAHourlyMeasuredDemandMinusRightsControlAreaQty_CRRBA_BQBmdh =
BAHourlyMeasuredDemandMinusRightsControlAreaQty_Ex1 Bmdh
ELSE (in the case where CRRBAAllocationExceptionFlag = 0)
BAHourlyMeasuredDemandMinusRightsControlAreaQty_CRRBA_BQBmdh =
BAHourlyMeasuredDemandMinusRightsControlAreaQty Bmdh
END IF
3.6.2CAISODailyCRRBAAllocationPrice md = (CAISODailyCRRBAAmount md
/ CAISOTotalDailyMeasuredDemandControlAreaQty_CRRBA_BQmd)
3.6.2.1Where CAISOTotalDailyMeasuredDemandControlAreaQty_CRRBA_BQmd =
CAISOTotalHourlyMeasuredDemandMinusRightsControlAreaQty_CRRBA_BQmdh
3.6.2.2Where IF CRRBAAllocationExceptionFlag = 1 THEN
CAISOTotalHourlyMeasuredDemandMinusRightsControlAreaQty_CRRBA_BQmdh =
CAISOTotalHourlyMeasuredDemandMinusRightsControlAreaQty_Ex1 mdh
ELSE (in the case where CRRBAAllocationExceptionFlag = 0)
CAISOTotalHourlyMeasuredDemandMinusRightsControlAreaQty_CRRBA_BQmdh =
CAISOTotalHourlyMeasuredDemandMinusRightsControlAreaQty mdh
ENDIF
3.6.3CAISODailyCRRBAAmount md =
CAISODailyIFMCongestionBalanceAmountmd +
CAISODailyCRRBAFundFromAuctionRevenueAmount md+CAISOTotalDailyCRRSettlementAdjustmentDueToCB md
3.6.3.1Where CAISODailyIFMCongestionBalanceAmountmd =
CAISOHourlyIFMCongestionBalanceAmountmdh
3.6.3.2Where CAISODailyCRRBAFundFromAuctionRevenueAmount md =
[CAISOMonthlyCRRAuctionMarketTOUTotalRevenueAmount t’md*
CAISODailyTOUMonthToDayConversionFactort’md]
3.6.3.3CAISOMonthlyCRRAuctionMarketTOUTotalRevenueAmount t’md =
CAISOMonthlyCRRAuctionMarketTOUTotalRevenueAmt t’md
Implementation Note: The input CAISOMonthlyCRRAuctionMarketTOUTotalRevenueAmt t’md and the charge type CAISOMonthlyCRRAuctionMarketTOUTotalRevenueAmount t’md both have the same values as the CAISOCRRAuctionMarketTOUTotalRevenueforMonthAmount U’U t’ from CC 6798, only that the month period bounded by U’ and U attributes has now been translated into Trade Month m, in which Trading Day d belongs. The monthly value is repeated for each day of Trade Month m.
Note: The input CAISOMonthlyCRRAuctionMarketTOUTotalRevenueAmt will not be reportable but the output CAISOMonthlyCRRAuctionMarketTOUTotalRevenueAmount will be reportable.
3.7Outputs
Row # / Name / DescriptionIn addition to any outputs listed below, all inputs shall be included as outputs.
1 / BADailyCRRBAAllocationAmount Bmd / The payment or charge to Business Associate B in order to clear the CRRBA daily account for TradingDayd.
2 / CAISODailyCRRBAAllocationPrice md / The allocation rate to obtain the BADailyCRRBAAllocationAmount Bmd.
3 / CAISODailyCRRBAAmount md / The amount in the CRRBA dailyaccount for TradingDayd.
4 / CAISODailyCRRBAFundFromAuctionRevenueAmount md / The CRRBA fund coming from net proceeds of CRR auction allocated for Trading Day d CRRBA account.
5 / BADailyMeasuredDemandControlAreaQty_CRRBA_BQBmd / The applicable dailyMeasured Demand eligible for CRRBA allocation.
6 / BAHourlyMeasuredDemandMinusRightsControlAreaQty_CRRBA_BQBmdh / The applicable hourly Measured Demand eligible for CRRBA allocation.
7 / CAISOTotalDailyMeasuredDemandControlAreaQty_CRRBA_BQmd / The CAISO total applicable daily Measured Demand eligible for CRRBA allocation.
8 / CAISOTotalHourlyMeasuredDemandMinusRightsControlAreaQty_CRRBA_BQmdh / The CAISO total applicable hourly Measured Demand eligible for CRRBA allocation.
9 / CAISODailyIFMCongestionBalanceAmountmd / The sum of all CAISO hourly IFM congestion balances of Trading Day d. Each hourly CAISO IFM congestion balance consist of either the hourly excess Congestion revenue, or hourly total deferred entitlement amount, after doing the CRR Hourly Settlement (CC 6700).
10 / CAISOMonthlyCRRAuctionMarketTOUTotalRevenueAmount t’md / The CRRBA fund coming from net proceeds of CRR auction revenues for Trade Month m. This is a constant monthly value provided on a daily basis.
4.Charge Code Effective Date
Charge Code/Pre-calc Name / Document Version / Effective Start Date / Effective End Date / Version Update Type
CC 6790 - CRR Balancing Account / 5.0 / 04/01/09 / 10/31/09 / Documentation Edits Only
CC 6790 - CRR Balancing Account / 5.1 / 11/01/09 / 01/31/11 / Configuration Impacted
CC 6790 - CRR Balancing Account / 5.2 / 02/01/2011 / 6/30/2013 / Documentation Edits and Configuration Impacted
CC 6790 - CRR Balancing Account / 5.3 / 07/01/2013 / 1006/310/20172 / Documentation Edits and Configuration Impacted
CC 6790 - CRR Balancing Account / 5.3a / 11/01/2017 / Open / Documentation Edits Only
CAISO, 2018 / Page 1 of 11